Loans
Financial Aid
Student Lending Principles
Duke University has established a set of publicly available principles and policies to govern educational lending practices for undergraduate, graduate and professional students. These principles emphasize that lending practices proceed from a commitment to the best interests of our students, that we support students' right to choose their lenders and that neither Duke nor its employees accept financial payments, goods or services of material value from lenders. All employees involved in financial aid and student lending are subject to a rigorous conflict of interest policy. Administrators may serve as unpaid members of lender advisory boards in order to help shape the products and services that will best meet the needs of our students; in such cases, Duke pays all costs associated with that service.
 
 

Entrance Loan Counseling

All first year students are required to complete Mapping-Your Future before federal loan funds can be disbursed to your account.  Below please find the website for both the Grad PLUS Loan Entrance Counseling and the Stafford/Perkins Combined Entrance Counseling 
 
 

Types of Loans

Federal Loans (Federal Family Educational Loan Program)
The School of Medicine is a participant in the Duke as Lender program. Terms and conditions of this loan are competitive and outlined on the Preferred Lender list that is distributed with the Financial Aid Award notification or can be obtained in the Financial Aid Office.

Subsidized Federal Stafford Loan Program.

A Stafford Loan is available to eligible students from many banks, lenders, and state agencies. The annual maximum for eligible medical students is $8,500 with an aggregate maximum of $65,500. Interest on the subsidized Stafford loan does not accrue until repayment begins six months after graduation. For purposes of the Federal Stafford Loan program and other Title IV funds, a student may qualify as financially independent of parents if the applicant meets certain criteria.

Unsubsidized Federal Stafford Loan.

In addition to the $8,500 subsidized Federal Stafford Loan, unsubsidized Federal Stafford Loans are available to eligible students up to $38,666. The student-not the federal government-is responsible for payment of the interest during enrollment and deferment periods. Interest accrues and students may choose to pay it while in school. Federal Stafford Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%. There is a six-month grace period after graduation before repayment begins.
 

Grad PLUS Loan

Students may borrow Grad PLUS loan funds up to their educational budget minus other financial aid. There is a 3% loan fee deducted from the loan principal each year. Grad PLUS loan borrowers are required to pass a basic credit check and the interest rate is fixed at 8.5%.

The Francis and Elizabeth Swett Loan Fund

A limited number of emergency loans are available in small amounts to any enrolled Duke medical student for a short period of time.

Please contact the Financial Aid Office for additional information.

Non-Need Based Assistance-Private Loans

Several loan sources external to the school are available to medical students who do not qualify for the school's need-based financial aid package. Students may borrow in combination up to the full amount of school approved costs. Students receiving the school's need-based package may use these external loan sources, if necessary, in lieu of the student's expected family contribution. Interest on non-need loans is variable from zero to 2% or 3% above prime or LIBOR rate.

Interest is borne by the borrower (no subsidy of interest) throughout the enrollment years and during the repayment period. However, payment of the interest may be deferred on most loans until the repayment period begins. Total amount of repayment is often three to four times the amount borrowed. Most lenders require the applicant to be credit-worthy.

Important Note

Consumer Credit History: Lenders may reject Stafford Student Loan applications (and other student loans) due to the applicant's poor credit history. This is due to the applicant not paying financial obligations as agreed -- for example, sometimes paying late, or not paying at all. These obligations could include rent, utilities, credit cards, physician or other health care costs, as well as car payments and any other legal financial obligations. Students are urged to protect their good credit by paying the full amount of all financial obligations on time. In the event the means to pay the obligation is not available, contact the business immediately to determine if there is a solution. Once a late payment on an account, or a collection on an account, is submitted to the credit bureau, it follows the borrower for seven years.

Loan Consolidation

Loan consolidation has become a complicated yet perhaps valuable option. With consolidation, the borrower can combine Federal educational loans into one new fixed rate loan after graduation/separation from school.
Non-federal loans such as a Duke University School of Medicine Loans or private loans do not qualify for consolidation. More information on consolidation is available from your Stafford lender.
 

Loan Repayment Options

First and foremost, contact your servicer. Their name is printed on materials you have received regarding your loans.
  1. The Association of American Medical Colleges published a book, State and Other Loan Repayment/Forgiveness and Scholarship Programs, which contains information on all repayment and loan forgiveness programs throughout the United States. Participation in these programs is not necessarily limited to primary care. The information can also be found on their website.

  2. The National Health Service Corps (NHSC) Loan Repayment Program and the Indian Health Service (IHS) are two loan repayment options. For those entering into agreements to serve for three or four years at a NHSC Loan Repayment Service Site, the program may pay each year the lesser of (a) a maximum of $20,000 ($25,000 for Indian Health Service), or (b) the total of qualified educational loans divided by the years agreed to serve. Priority for participation in the program is dependent upon the current staffing needs of the NHSC. In the past, priority for selection was given to physicians who were U. S. citizens when they apply (required for federal employment potential); will have completed by the start of service the training required to sit for the specialty board examinations in family practice, obstetrics and gynecology, internal medicine or pediatrics. For the NHSC Loan Repayment Program call (800) 221-9393 or visit their website.

  3. The National Institutes of Health Programs offers repayment of loans for NIH employees. For each year of full service, NIH physicians and scientists who are engaged in qualified AIDS research may have up to $20,000 of their qualified educational loans repaid. Depending on available funds, NIH will consider repayment of loan amounts that exceed 20% of the participant's annual NIH basic pay or stipend at entrance on duty or program entrance date. Debt below the 20% must be paid by the participant. NIH will repay one-third of the remaining educational debt for each year of qualified service up to a maximum of $20,000 per year for a minimum of two years. Continuation contracts for subsequent years are available. Payment made by NIH to lenders may represent taxable income. If requested by the applicant, NIH will pay a reasonable amount to partially reimburse participants for this tax liability. The rate of tax reimbursement may vary from year to year. The present tax reimbursement rate is 39% of the amount paid to lenders.

  4. The Armed Services Loan Repayment Program information can be found on their website.
Duke Loan:
Duke Loan Office. Information regarding repayment of Duke Loans is through ECSI. You may call 1-888-549-3274 for information concerning your Duke or Perkins loan.

Funds for North Carolinians

North Carolina Student Loan Program for Health, Science and Mathematics

These loans provide financial assistance to North Carolina residents who demonstrate need as determined by the Board. The applicant must be a resident of North Carolina and accepted as a full-time student in an accredited associate, baccalaureate, master's or doctoral program leading to a degree. Loan recipients in some professional or allied health programs may cancel their loans through approved service in shortage areas, public institutions or private practice.
For application forms and more information write:
 
NCSEAA-HEW
PO Box 14223
RTP, NC 27709-4223
Phone 800.700.1775
 
 
The Board of Governors Medical Scholarship Loan Program (BGMSL) is funded by the North Carolina General Assembly. Funds are available to incoming legal N.C. residents who have been admitted to a medical school in North Carolina and demonstrate financial need and a desire to practice medicine in North Carolina. Provided sufficient funds are available, the scholarship provides an annual stipend of $5,000 plus tuition, mandatory fees, and medical insurance. Awards are renewable annually for a total award period of four years, provided the student makes satisfactory academic progress and continues to show financial need. One calendar year of full-time employment with the state of North Carolina is required for each school year a loan is received.

 
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